JLG returns to profit and triples backlog
28 April 2011
JLG Industries sales grew by 72.7% to US$471.2 million for the three months to 31 March - JLG's second quarter - and the business returned to profitability. The company's backlog at the end of the quarter almost tripled to $596 million compared to a year ago. Operating profits were $17.7 million for the quarter.
Charles L. Szews, president and chief executive officer of Oshkosh Corp, JLG's parent company, said; "Our access equipment business returned to profitability this quarter and continued its recovery with non-M-ATV [military vehicle] related sales increasing 73 percent, orders nearly doubling and backlog nearly tripling compared to the prior year's second quarter.
"Multiple new product launches during the quarter were greeted with enthusiasm by our customers and led to robust order intake for these new products." The company launched its new 34 ft and 150 foot booms at ConExpo as well as the new Hinowa-produced crawler machines.
Oshkosh said the increase in sales was the result of growing demand globally, but led by replacement demand for rental fleets in North America.
Over the past few years JLG has been benefitting from manufacturing military vehicles for Oshkosh's defence division. These sales amounted to $737 million in the second quarter of 2010, but were minimal in the current quarter.
Overall, Oshkosh reported a 39.1% decrease in revenues to $1.75 billion and operating profits 74% down to $132.4 million. The lower sales levels were largely the result of decreased M-ATV military sales, which fell by $1.38 billion, offset in part by increased demand for aerial platforms and telehandlers.